G G Automotive Gears Ltd.
|BSE: 531399||Sector: Engineering|
|NSE: N.A.||ISIN Code: INE493B01017|
|BSE 05:30 | 01 Jan||G G Automotive Gears Ltd|
|NSE 05:30 | 01 Jan||G G Automotive Gears Ltd|
|BSE: 531399||Sector: Engineering|
|NSE: N.A.||ISIN Code: INE493B01017|
|BSE 05:30 | 01 Jan||G G Automotive Gears Ltd|
|NSE 05:30 | 01 Jan||G G Automotive Gears Ltd|
To the Members of
G. G. Automotive Gears limited
Report on the Standalone Financial Statements Opinion
We have audited the standalone financial statements of G. G. Automotive Gears limited(the Company) which comprise the balance sheet as at 31st March 2020 and thestatement of Profit and Loss (including other comprehensive income) statement of changesin equity as at March 31 2020 and statement of cash flows for the year then ended and asummary of significant accounting policies and other explanatory information (hereinafterreferred to as the standalone financial statements). In our opinion and to thebest of our formation and according to the explanations given to us the aforesaidstandalone financial statements give the information required by the Companies Act 2013(the Act) in the manner so required and give a true and fair view inconformity with the Indian Accounting Standards prescribed under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended(IndAS) and other accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2020 the profit and total comprehensiveincome changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisionsof the Companies Act 2013 and theRulesthereunder and we have fulfilled our other ethical responsibilities in accordancewith these requirements and the Code of Ethics. We believe that the audit evidenceobtained by us is sufficient and appropriate to provide a basis for our audit opinion onthe standalone financial statements.
Emphasis of matter
We draw your attention to attached note no.3(iv) to the Standalone financial Statementswhich explains the management's assessment of the financial impact due to the lock-downand other restrictions and conditions related to the COVID-19 pandemic situation for whicha definitive assessment of the impact in the subsequent period is highly dependent uponcircumstances as they evolve. our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of th the current period. Thesematters were addressed in the context of our audit of the financial statements as a wholeand in forming our opinion thereon and we do not provide a separate opinion on thesematters. We have determined the matters described below to be the key audit matters to becommunicated in our report.
Information other than the Financial Statement and Auditor's Report Thereon
The Company's board of director is responsible for the preparation of the otherinformation. The other information comprises the information included in the Managementdiscussion and Analysis Board's Report Business Responsibility Report CorporateGovernance and Shareholder's information but does not include the standalone financialand our auditor's report thereon. Our opinion on the standalone financial statements doesnot cover the other information and we do not express any form of assurance conclusionthereon.
In connection with our audit of standalone financial statements our responsibility isto read the other information and in doing so consider whether the other information ismaterially inconsistent with the standalone financial statements or our knowledge obtainedduring the course of audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (the Act) with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition and financial performance of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror. In preparing the Ind. AS financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so. That Board of Directors is also responsible foroverseeing the Company's financial reporting process.
Auditor's Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but isnot a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also: Identify and assess therisks of th material misstatement of the standalone financial statements whether due tofraud or error design and perform audit procedures responsive to those risks and obtainaudit evidence that is sufficient and appropriate to provide a basis for our opinion. Therisk of not detecting a material misstatement resulting from fraud is higher than for oneresulting from error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control. Obtain an understanding ofinternal financial controls relevant to the audit inorder to design audit procedures thatare appropriate in the circumstances. Under section 143(3)(i) of the Act we are alsoresponsible for expressing our opinion on whether the Company has adequate internalfinancial controls system in place and the operating effectiveness of such controls.Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as going concern. Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit. We alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. 1. As required by Section 143(3) of the Act based on our audit we report that:
a) We have sought and obtained the information and explanations which to the best ofour knowledge and belief were necessary for the purposes of our audit.
b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.
c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equ and the Statement of Cash Flows dealt with by thisReport are agreement with the relevant books of account.
d) In our opinion the aforesaid standalone financial statements comply with the Ind ASspecified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on March31 2020 taken on record by the Board of Directors none of the directors is disqualifiedas on March31 2020 from being appointed as a director in terms of Section 164(2) of theAct.
f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in Annexure A. Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.
g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended: In ouropinion and to the best of our information and according to the explanations given to usremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements.
ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts;
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company and its subsidiary companiesincorporated in India.
2. As required by the Companies (Auditor's Report) Order 2016 (theOrder) issued by the Central Government in terms of Section 143(11) of the Act wegive in Annexure B a statement on the matters specified in paragraphs 3 and 4of the Order.
ANNEXURE REFERRED TO IN P OINT 1 OF REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTSOF THE REPORT OF THE AUDITORS ON THE ACCOUNTS OF G.G. AUTOMOTIVE GEARS LIMITED FOR THEYEAR ENDED 3 st MARCH 2020
1 (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) A major portion of the assets has been physically verified by the management inaccordance with the phased programme of verification adopted by the company . In ouropinion frequency of verification is reasonable. T o the best of our wledge n o materialdiscrepancies have been noticed on such verification.
(c) The title deeds of immovable property are held in the name of the company.
2 The inventory has physically verified by the management during the year at reasonableintervals. In our opinion the frequency of verification is reasonable . At year Endverification could not be done due to COVID 19 outbreak. However alternate audit procedurewere applied for arriving at the physical record of the Inventory. The discrepanciesnoticed on physical verification were not material and have been properly d ealt with inthe bo accounts.
3 The company has not granted any secured or unsecured loans to any companies firmslimited liability partnership or other parties covered in the register maintained undersection 189 of the Companies Act 2013.
4. The company has no such transaction during the year to which the provisions ofsection 185 and 186 of the Companies Act 2013 gets attracted.
5. In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits from the public within the meaning of section 73 to76 of
Companies Act 2013 or any other relevant provisions of the Act and the rules framedthere under.
6. The company is not covered under the clause regarding maintenance of cost recordsprescribed by the Central Government under section 148 (1) of the Companies Act 2013 andas certified by the cost auditor the company has maintained proper accounts and recordsfor the same.
7. (a) According to the records of the company the company is regular in depositingwith appropriate authorities undisputed statutory dues including provident fundemployees' state insurance income tax sales tax service tax custom duty excisedutyvalue added tax cess and other statutory dues applicable to it.
(b) According to the records of the company there are no dues of sales tax servicetax custom duty excise duty or value added tax on account of any dispute.
8. According to information and explanation given to us the company has not defaultedin repayment of dues any financial institution bank or government. The company has notissued any debentures.
9. The company has n ot raised money by way of initial public offer or further public(including debt instrument) during the year. According to the information and explanationgiven to us the term loan of the company were applied for the purpose for which those areraised.
10. No fraud on or by the company has been noticed or reported during the year.
11. According to information and explanation given to us the company has paid orprovided the managerial remuneration in accordance with the requisite approvals mandatedby the provisions of section 197 of the Companies Act 2013
12. The said company is not a Nidhi company. Hence the provisions of Nidhi company arenot applicable
13. According to information and explanation given to us the company has disclosed allthe transactions with the related parties in compliance with the sections 177 and 188 ofthe Companies Act 2013 and details have been enclosed in the Financial Statements asrequired by applicable accounting standard
14. The company has not made any preferential allotment or private placements of shares
15. According to information and explanation given to us the company has not enteredinto any non cash transactions with directors or persons connected with them
16. The company is not required to registered under section 45-IA of the Reserve Bankof India Act 1934
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF G.G. AUTOMOTIVE GEARS LIMITED Report on the Internal Financial Controlsunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 (theAct)
We have audited the internal financial controls over financial reporting of G.G.AUTOMOTIVE GEARS LIMITED (the Company) as of March 31 2020 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit oof Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe d esign implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the Guidance Note) and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance 168 Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and opeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's th internal financial controls system overfinancialreporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thereparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. company's internal financial control over financialreporting includes those policies and procedures that :
(1) pertain to the maintenance f records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2020 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.